The Ruling on Buying Gold on Installments
If a person buys this gold in exchange for something other than currency, gold and silver, there is no harm in it. For example, if it is bought in exchange for a food item like dates or wheat, or in exchange for vehicles or something similar, there is no objection to it, because there is no riba between gold and silver and grains (food items), and between gold and silver and manufactured goods. But if he buys it on installments in exchange for gold, silver or currency, then it is haram, because there are two conditions for selling gold for gold:
(1) First condition: equality in weight
(2) Second condition: receipt (possession) within the contract period
When gold is sold for silver or for currency, there is only one condition, and that is that possession must be given within the contract period before separating. The evidence for this is the following hadith of the Prophet ﷺ:
“Gold for gold, like for like, equal for equal, and hand to hand.”
In another hadith it is as follows:
“Gold for gold, silver for silver, wheat for wheat, dates for dates, barley for barley, salt for salt, like for like, equal for equal, but when these kinds differ, then sell as you wish, provided it is hand to hand.”
